Flexible financing for current agricultural activities

The Agro Compact loan is designed for agricultural producers engaged in seasonal activities who require financing tailored to the agricultural cycle.

Who it is for

The Agro Compact loan is available to agribusiness entities that:

• are residents of the Republic of Moldova and carry out agricultural production, processing, or provide agricultural services;
• own or lease agricultural land and/or agricultural machinery and have at least one completed agricultural cycle of experience;
• do not have a negative credit history.

For loans secured by the next year’s harvest, eligible loyal clients must:

• have a positive credit history with the Bank;
• have at least 3 years of experience in agriculture;
• conduct account turnovers through the Bank in accordance with the loan agreement;
• provide guarantees that fully cover existing credit obligations;
• have at least 50% of their activity focused on cereal crop cultivation.

Purpose of financing

The Agro Compact loan may be used for:

• financing working capital required for current agricultural activities;
• purchasing seeds, fertilizers, pesticides, fuel, and lubricants;
• repair and maintenance of agricultural machinery and equipment;
• agricultural works, crop maintenance, and operational expenses;
• payment of salaries, taxes, and mandatory duties;
• payment of crop insurance policies;
• refinancing existing agricultural loans contracted with other banks, provided there are no outstanding arrears.

All financed expenses are intended exclusively for agricultural activities related to the current year’s harvest.

Main conditions

• Loan amount: from 100,000 MDL (or equivalent);
• Currency: MDL, EUR (linked to EUR);
• Loan term: up to 24 months;
• For loans secured by the next year’s harvest:
  • maximum term — one agricultural cycle;
  • maximum amount — up to 10% of average monthly proceeds from current activities processed through the Bank’s accounts, but not exceeding 1,000,000 MDL.

Collateral and loan security

The loan is granted with one or more forms of security:

• collateral covering 100% of the loan amount (real estate, machinery, equipment, agricultural machinery, vehicles, next year’s harvest – for loyal clients);
• ODA guarantee (up to a maximum of 50% of the total collateral value);
• surety provided by the company’s associates/shareholders (participation share ≥ 20%).

Repayment and payment terms

• loan repayment may be made monthly or seasonally;
• installments may be equal or differentiated, depending on the business cash flow;
• interest and applicable fees are payable monthly or seasonally;
• the repayment schedule is customized and agreed jointly with the client, taking into account the seasonality of agricultural activities and the production cycle.